Loading, Unloading, Packing, Storage and Warehousing of Rice also Exempted from Service Tax;

Cord Blood Banks also get the Same Relief

Finance Minister, Shri P. Chidambaram has proposed to exempt loading, unloading, packing, storage and warehousing of rice from service tax. Stating this while presenting the Interim Budget 2014-15 in Parliament here today he said that by virtue of the definition of ‘agricultural produce’ in Finance Act, 2012, read with the Negative List, storage or warehousing of Paddy was excluded from the levy of service tax; but rice was not. As this distinction was somewhat artificial, the same has been done away with and now rice has also been exempted.

Shri P. Chidambaram said that he has acceded to the request of the Ministry of Health and Family Welfare that services provided by Cord Blood Banks are also health care services and hence they should also be exempt from service tax.

Notifications in respect of the above changes will be issued today itself.

Exemption of loading, storage and warehousing of rice from service tax; cord blood bank services classified as health care exemptions. Loading, unloading, packing, storage and warehousing of rice are exempted from service tax by aligning rice with the definition of agricultural produce, thereby removing the previous distinction that excluded paddy but not rice. Separately, services provided by cord blood banks are classified as health care services and exempt from service tax; implementing notifications will be issued.